Press Release
23rd May 2002
DANA PETROLEUM PLC
("DANA" OR "THE GROUP")
DANA COMPLETES ACQUISITION OF NORTH SEA ASSETS FROM CONOCO AND DELIVERS INCREASED OIL PRODUCTION AT CLAYMORE
Dana is pleased to announce that it has completed its acquisition of a portfolio of North Sea interests from Conoco (U.K.) Limited. The portfolio includes a 25.8% interest in the Caledonia oil field which is currently under development. Caledonia is scheduled to achieve first production in October 2002 with initial flow rates expected to be up to 12,000 barrels of oil per day. In addition, Dana has gained 11% interests in the Enoch oil field and J1 gas-condensate field and a 25% interest in the Cavendish gas field, all of which are undergoing development studies. Proven and probable reserves associated with these fields are approximately 9.4 million barrels net to Dana. The transaction included Dana assigning its 3% interest in the Orca/Beta gas discoveries to Conoco.
Dana is also pleased to announce that the first long-reach well has been successfully drilled in the Claymore field, following the rig upgrades carried out in 2001. The C75 well, which will recover previously inaccessible reserves in a crestal area of the field, is currently producing at around 6,000 barrels of oil per day, representing an approximate 15% increase to overall field production. The Claymore rig is now drilling the 'Drum' prospect, located to the West of the main Claymore field.
Dana's Chief Executive, Tom Cross, commented:
"Both these events demonstrate that Dana is delivering on its strategy. The Conoco acquisition is an example of how an exploration discovery can be used to leverage Dana into significant accelerated production and cashflow at an attractive price. The successful Claymore well illustrates how, in order to underpin our exploration programme, Dana will continue to invest in its producing fields when attractive returns on investment can be achieved in a short space of time."
Enquiries to:
| Dana Petroleum plc | Tel: 01224 652400 | |
| Tom Cross, Chief Executive | ||
| Andy Bostock, Technical Director | ||
| College Hill Associates | Tel: 020 7457 2020 | |
| Archie Berens |
